Mastertrusts take return out of risk and return
Monday 27 September 2004
If we are to believe the marketing brochures, financial markets today are far too complex to "do it yourself". Better to delegate the job of reading those investment statements to a stockbroker or financial planner.
By The LandlordThe administration of these investments is also increasing in importance and cost.
Many advisers employ a third party, most commonly their favourite fund manager, to undertake the overall management of each of their client's accounts via a mastertrust structure.
A mastertrust is a computer-based platform that permits investors access to a range of fund managers and unit trusts through one investment door. Many of New Zealand's largest financial planning firms base their business around a mastertrust structure. Although mastertrusts are promoted as making the administration of their investments cheaper and simpler for clients, a closer look at these products suggest their fee structures are prohibitive and what benefits there are accrue principally to the adviser.
Read More - Opens in a new window
Commenting is closed
Auckland’s housing market saw another slump in sales volumes in May but prices are holding steady, according to the city’s largest real estate agency.
The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.